Overview of approved changes

SRP concluded a public pricing process on March 25 by approving an overall average annual price decrease of 2.2%. The changes will take place with the May 2019 billing cycle, which for most customers begins in April. Highlights of the proposal include:

An overall average annual price decrease of 2.2%
This is the result of a reduction in fuel expenses and a modest increase in base prices.
The approved decrease incorporates and adds to the decreases that SRP initially implemented on a
temporary basis during Fiscal Year 2019. Individual impacts will
vary by price plan and usage.

New time-of-use on-peak hours
Summer on-peak hours are shortened by one hour, changing from 1–8 p.m. to 2–8
p.m., providing customers on the TOU, Customer Generation, Residential Demand and Electric
Vehicle price plans with an additional hour of lower-cost power.

New price plans for those who generate some of their own electricityThere are three new price plans for residential
customers who produce their own energy with rooftop solar and other technologies. Two of
these options have no demand charge associated with them.

Increased discount for those on the Economy Price Plan (EPP)
The discount for customers who qualify for the EPP will be increased to $23 per month year-round, from $20 in winter months and $21 in summer months.

Increased contributions to the Bill Assistance program
SRP contributions to the Bill Assistance program for limited-income customers will
increase to $500,000 for the next five years.

A change to EZ-3 plans
The 2–5 p.m. EZ-3 experimental plan is frozen from new participation and will be eliminated in two years. The 3–6 p.m. and 4–7 p.m. options remain.

Environmental programs continue, but costs rolled into other billing components
Renewable energy and energy efficiency are part of SRP's core business. As such, the
Environmental Programs Cost Adjustment Factor (EPCAF) will be discontinued as a separate
price plan component. Costs of renewable energy and energy efficiency will instead be
captured through base prices and the Fuel and Purchased Power Adjustment Mechanism (FPPAM).
Additional information about this change is available.

SRP management has also committed to increase SRP’s current battery storage program incentive from $150 per kilowatt hour (kWh) to $300 per kWh of storage capacity, up to a maximum of $3,600 per system. The doubling of the incentive will be capped at 4,500 installations.

About SRP

SRP is a community-based, nonprofit utility. We make decisions in the best interest of our
customers, the environment
and the communities we serve. Revenues received through the sale of electricity
are reinvested into the electric grid and help keep SRP prices among the lowest in the
Southwest.